US poised to become world’s leading liquid petroleum producer


#1

The US is overtaking Saudi Arabia to become the world’s largest producer of liquid petroleum, in a sign of how its booming oil production has reshaped the energy sector.
US production of oil and related liquids such as ethane and propane was neck-and-neck with Saudi Arabia in June and again in August at about 11.5m barrels a day, according to the International Energy Agency, the watchdog backed by rich countries.

ft.com/intl/cms/s/0/98104974-47e4-11e4-be7b-00144feab7de.html#axzz3EodIYs4D

If not for the interference of radical environmentalists and over regulation by the Govt we could be energy independent-which would not only lower the cost of everything but would also have massive positive geo-political implications.


#2

I thought the goal was to diminish our dependence on oil.

Instead we end up with exporting a lot of it.


#3

The goal is to diminish our dependence on foreign oil. We export a lot of it due to the inability to build new refineries and pipelines due to Govt regulation.


#4

Bravo!!

Frack baby frack!!!

ICXC NIKA


#5

Amen! Drill baby Drill!


#6

Gas prices are going down for two reasons:

  1. We make more of it
  2. We use less of it

We do use less of it because now cars with a 30+ MPG average are common. My Chevy Cruze gives me 35MPG (calculated by dividing the true number of miles by the true number of gallons since I bought the car).

Even full size pickup trucks have better gas mileage than small size pickup trucks from 15 years go.

If only we would stop manufacturing our consumer goods overseas, we could also cut on the amount of fossil fuel burned to carry them over here.

To a Galactica fan, this sounds dirty.


#7

To Canada mainly – (US Oil Exports Hit 57-Year High in July)

Worth noting,

Prior to the fracking revolution, world oil production had been shifting toward heavier crudes. US refiners reacted by investing in facilities (known as “cracking” facilities) that could convert the heavier crudes to the lighter products most valued in the market, such as gasoline, jet fuel, and diesel. Other refiners outside of the United States did not invest as heavily in such facilities, and their operations remained more dependent on working with lighter crude oils.

The fracking revolution brought considerably more light crude oil onto the US market and created excess supply. The ban on US exports of crude oil means that the excess supply of light crude oil in the United States cannot be sent to refiners elsewhere in the world, and this surfeit keeps the heavier crudes produced elsewhere from being refined in the United States. The efficiency of global refinery operations would be improved considerably if the ban on US exports of crude oil were to be lifted—but how would lifting the ban affect prices for crude oil and refined products in the United States?

​Crude Oil Markets

Because the ban on US exports of crude oil has created a situation in which light crude oil is bottlenecked in the Midwest, lifting the ban would cause the price of light crude oil there—currently about $6.34 per barrel below the price for comparable crude oil elsewhere—to rise toward world prices. In addition, the increased supply of crude oil reaching the international market would put some downward pressure on international crude oil prices, assuming the Organization of the Petroleum Exporting Countries (OPEC) does not respond with matching cutbacks in its output.

Moreover, the improved efficiency of refinery operations and competitive pressure would slightly reduce what is known as the crack spread—the difference between prices for refined products and crude oil. A reduced crack spread would slightly boost the international demand for crude oil, putting upward pressure on international crude oil prices. Whether international crude oil prices would rise or fall on net would depend on the relative increases in supply and demand.

rff.org/Publications/Resources/Pages/186-Lifting-the-Oil-Export-Ban.aspx


#8

It makes economic sense to export some oil, even if we’re a net importer. It’s counter-intuitive, but true.


#9

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